Category Archives: Bit of politics

Wallace-and-gromit_0

The Heywood & Middleton result shows Ed Miliband will be the next PM

There were two by-elections this Thursday for UK parliament constituencies, both in England: Clacton-on-Sea, in Essex, and Heywood & Middleton, in Greater Manchester.

The Clacton one isn’t particularly interesting: a vaguely crazy Tory MP decided to defect to UKIP, as MPs are allowed to do in a Westminster system, and decided to waste everyone’s time while buying publicity for his new party with public money by holding a by-election instead of hanging on until the general election in May 2015. He won, because Clacton is full of horrible bigots. The Labour vote share went up, albeit from barely anything to not very much.

The Heywood by-election is more normal, in that it came about because the local MP inconveniently died, but also more interesting.

Heywood is traditionally a reasonably safe Labour seat. But it’s not a “they weigh the vote here” seat like Clacton used to be for the Tories, of the sort that Labour still have in poorer, more industrial northern English and southern Scottish cities: in the 2010 General Election, Labour took 40% of the vote, the Tories took 27% and the Lib Dems took 23%. UKIP, in their previous incarnation as mostly harmless vaguely posh cranks, got 2.6%; the outright-fascist BNP got 7%.

In yesterday’s by-election, Labour’s share of the vote held up: they got 41%. The Liberal Democrats were pulverised, with their vote share falling to 5%. The Tories were badly damaged, with their vote share falling to 12%, and the BNP didn’t stand. UKIP benefited from all of these changes, with their vote share rising to 39%.

The concept of Lib Dems switching to UKIP seems weird, but it was borne out by Tory strategist Lord Ashcroft’s polling after the Eastleigh by-election, where Lib Dem-to-UKIP switchers were the largest single group. This reflects the fact that a lot of people voting Lib Dem in 2010 did so because they hate the Tories and Labour, not because they are committed to economically-centrist civil-libertarian ideas.

Hopefully we’ll get some detailed post-vote polling data on the dynamics in play at Heywood. I suspect we may not, as it is certainly not a Tory target seat and so may not be worth Lord Ashcroft’s money – I’ll do some more detailed analysis on switching if we do. But on the face of it, it would appear that in Tory areas, UKIP is capable of taking significant numbers of Tory votes, to the point where it will win some seats outright and – more importantly – cost the Tories enough votes in marginal seats to win them for Labour.

In Labour areas, the best UKIP can manage is to bring together angry Tories, ex-neo-Nazis, and the people who voted Lib Dem in 2010 out of spite – which could plausibly win it a seat or two in its own right (although it’s worth noting that by-elections always exaggerate the crank party vote, because they’re far more likely to bother turning up), but certainly won’t lose Labour any seats to the Tories, and should actually help Labour out in seats that were close Labour/Conservative marginals in 2010.

If the way things played out on Thursday night is the way they play out in Westminster in May 2015, Ed Miliband will be the next Prime Minister, leading a government with a working majority. Don’t listen to the idiots who are pretending this is equally bad news for both major parties.

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Not a case of political correctness gorn mad

The picture is a Banksy mural. It was painted on 30 September 2014, and erased by the end of 1 October 2014.

The story was reported by UK media on 2 October 2014 as being “erased after ‘racist’ complaint“, with the implication being that – despite its clear antiracist message – minority groups were offended because they’re idiots who can’t take a joke.

This is unlikely.

Clacton-on-Sea is one of the whitest places in England. Of the 1,688 people living in the seaside postcode area, 29 are non-white.

It’s also one of the most bigoted places in England. Its Tory MP recently defected to UKIP, and is expected to win a resounding victory in his new incarnation as a Kipper – which is presumably why Banksy chose the place as the site for his mural. Like many eastern England coastal towns, it is full of bitter angry old white people (much of the Economist’s analysis on Tilbury stands in here, although Clacton is far further from London and was never a dock town) and low on jobs. Despite featuring very few immigrants, because nobody in their right mind would choose to live there, the residents blame the lack of available jobs on them anyway.

So let’s consider the probabilities of these two scenarios:

1) one of the 29 non-white people saw the piece, assumed it was racist rather than anti-racist, complained to the (bitter, angry, old, white) staff at the right-wing, Tory-controlled council, and was taken seriously in an example of PC Gorn Mad.

2) one of the 1,659 white people saw the piece, didn’t like its message, complained to the (bitter, angry, old, white) staff at the right-wing, Tory-controlled council about Anti-White Racism, and it got taken down in an example of humourless jobsworth-ery with a possible side dish of bigotry.

My money is heavily on scenario 2 (and I made a few bob on my last excursion into political betting, so I’m feeling lucky if anyone wants to take me up on that one…)

Abbott, Birthers, written constitutions, judges, hilarity

Australian PM Tony Abbott was born in the UK in 1957. Being born in the UK between 1948 and 1983, he immediately became a British citizen by birth. His mother was an Australian citizen, so he also immediately acquired the right to Australian citizenship by descent.

Paperwork and patriotism

Australian Prime Minister Tony Abbott
Australian Prime Minister Tony Abbott

The law in force at the time provided automatic citizenship by descent on registering with the Australian government, for anyone under the age of 25. Abbott’s parents didn’t do this at the time of his birth, and also didn’t do this when they moved to Australia in 1960, when Tony was three years old, as assisted migrants (Ten Pound Poms).

Abbott acquired Australian citizenship by registration in 1981, at the age of 23, when he applied for a Rhodes scholarship to Oxford University. Taking an Australian Rhodes scholarship requires you to have Australian citizenship, and to have been resident in Australia for five of the last 10 years. Abbott presumably discovered on application that he wasn’t the Australian citizen he believed himself to be [1].

Not worrying about formal nationality was common at the time of Abbott’s birth and emigration: British and Australian nationality were only legally separated with the two countries’ 1948 citizenship acts, and up until 1973 the distinction remained irrelevant for most practical purposes. British citizens [2] were eligible to move to Australia without strict migration criteria, vote in Australian elections, and become Australian citizens after a year’s residence without having to undergo the naturalisation process that applied to other foreigners. For another decade, up until 1984, British citizens were eligible to vote and stand for office in Australia without becoming Australian citizens – and British citizens who were on the electoral roll in 1984 and continue to reside in Australia remain eligible.

So, Abbott’s parents were a bit crap at admin, in a context where nobody really thought that the legal difference between British and Australian citizenships mattered (the majority of Australians in 1960, and a large proportion in 1980, had been legally British during their own lifetimes despite never having set foot in the UK, because all Australians were legally British until 1948). His parents filled out a form well within the allowable 25 years allowing him to claim citizenship through birth rather than naturalisation.

People going on about this aspect of Abbott’s early life are basically idiots, with fewer legs to stand on than the average snake.

Independence Day: 3 March 1986

This map clearly shows that only the top half of Western Australia is British
This map clearly shows that only the top half of Western Australia is British

The Australia Act 1986, passed simultaneously in the UK and Australian parliaments, severed Australia’s remaining formal colonial ties to the UK [3]. The UK Parliament renounced its right to legislate with effect in Australia (at state or federal level), the UK government renounced all powers to advise the Queen on Australian matters, and the UK Privy Council lost its status as Australia’s official highest court of appeal.

The long title to the Act describes Australia as “a sovereign, independent and federal nation”, and the High Court of Australia confirmed in Shaw vs Minister for Immigration in 2003 that the Act marks the start date for Australian independence. As well as being a far better date to celebrate Australia’s national day than either the current Australia Day (commemorating the First Fleet of white criminals and prison guards on 26 January, 1788) or the sometimes-suggested alternative of Federation Day (commemorating the establishment of the federal parliament on 1 January, 1901), this declaration of independence had a particularly weird unforeseen consequence for federal politics.

Seriously, foreigners are the wurst
Seriously, foreigners are the wurst

One of the major drivers behind Federation was settler paranoia about non-white people and people of non-English descent, and the desire to impose greater control on borders [4]. This is reflected in the Constitution, whose Section 44i bans people who are “a citizen… of a foreign power” from standing for federal parliament.

This clause came out of fear of fifth-columnists, traitors, Germans, Chinese spies, and all the other things that continue to fill the nightmares of white right-wing hicks. Since all Australians were British citizens at the time, nobody from the British Empire was considered to be of a foreign power; that only applied to the weird ones who ate garlic, drank coffee and didn’t even speak English. But if you were of German birth and wanted to stand for federal parliament, you needed to renounce your German citizenship first, even if this wasn’t cancelled upon your acquisition of Australian citizenship.

You can probably see where this one is going

After the Australia Act 1986, the High Court determined in Sue vs Hill (1999) that since Australia was independent, the UK was now also on the list of undesirable places full of dirty foreign traitors who shouldn’t be allowed to sully the federal parliament’s door – and therefore, that anyone who was an Australian/UK dual national was required to renounce their citizenship before they were elected to federal parliament, just like dual nationals of other countries.

In a country with a flexible constitution, this would have been a good cue to take the sensible measure of repealing a ridiculous law enacted by 19th century xenophobes and serving no purpose whatsoever. But the Australian constitution is extremely hard to amend, requiring a process of national referendums, which would be overkill over a mild and faintly embarrassing procedural inconvenience – so Section 44i remains in force. Anyone born a foreign citizen seeking federal office needs not only to become an Australian citizen, but also to renounce their foreign citizenship.

Which brings us to the more significant accusations against Abbott.

"The second that dickhead gets thrown out, I'll down this in one."
“The second that dickhead gets thrown out, I’ll down this in one”

Former PM Julia Gillard, also UK-born, made clear as PM that she had formally renounced her British citizenship before entering the Australian parliament in 1998. Abbott has never said this publicly in the same way, arousing suspicions from various corners. Yesterday (2 September), his office issued a statement that “The Prime Minister is an Australian citizen and does not hold citizenship of any other country”.

This is a noticeably less strong claim than the one that Gillard made: it could mean he renounced his UK citizenship either before standing for parliament, or at some point after becoming an MP, or last week.

Screeching Birthers are still talking out of their arses

But Tony Abbott’s eligibility to be a federal MP in this parliament doesn’t hinge on whether he had renounced UK citizenship in 1994, when he first became MP for Warringah – it hinges on whether he had renounced UK citizenship at the date of the last federal election, which was his second as Leader of the Opposition and prospective Prime Minister. It’s vanishingly unlikely, given that Section 44i and Sue vs Hill are both known quantities, that the Liberal Party would have been incompetent enough to go to election twice with a leader who was ineligible for office.

Even if this had somehow happened, which would be hilarious, the result would be to invalidate Abbott’s election as MP for Warringah, forcing a by-election in an safe Liberal seat, with a large continued Liberal-National majority in the lower house even in the extremely unlikely event that the by-election were lost. There would be no requirement in the constitution for Abbott to stand down as PM at this point: the PM isn’t mentioned in the constitution, and there is no legal requirement for the PM to be an MP. More likely, he’d stand in the by-election (since we know he is now eligible), win it, and then carry on regardless.

Nonetheless, the whole shebang does draw attention to an extremely silly constitutional provision that Australia would be best without.

[1] Something rather like this happened to a friend’s sister, who was born in Australia after the 1986 Australian Citizenship (Amendment) Act to parents who at the time were not permanent residents. She discovered aged 18, having lived her whole life in Australia, that she wasn’t an Australian citizen and needed to apply for naturalisation rather urgently.

[2] For reasons that are painfully complicated, the law actually referred to British subjects, which is not quite the same thing as British citizens, but that’s a post for another day.

[3] Elizabeth II’s powers in Australia are as Queen of Australia, not as Queen of the United Kingdom.

[4] luckily, this no longer applies to anybody ever.

$27 million a year is a bargain price to buy a government

It’s been Good Times Online as Crikey gets hold of a copy of News Australia’s detailed management accounts for fiscal year 2012-13 (I’ve uploaded a copy here, since the Crikey version, hilariously, is paywalled).

As a way of demonstrating its commitment to journalism, News has threatened to sue anyone who reports on the topic. The fact that The Australian loses $27 million a year (almost as much as the Guardian, despite being a barely-read Canberra local paper rather than a major global news organisation) has been noted as particularly hilarious.

If you try and frame The Australian as a newspaper in the traditional sense, of using content to sell readers to advertisers, then the level of fail here is baffling. News is a private company, not a charitable trust dedicated to furthering the cause of journalism. The continued existence of The Australian (and the continued employment of its coterie of gibbering morons at an average wage of $174,000) is a mystery.

But I don’t think that’s what’s going on. The News Australia accounts show that the actual value in News Australia comes from its pay-TV businesses.

News Australia’s profit for FY12-13 was $367 million. Its share of profit from pay-TV (Foxtel, Fox Sport and Sky New Zealand) was $230 million. Add in REA (which runs realestate.com.au)’s $146 million profit, and you’re already above total group profit. The newspapers in total – even including the profitable regional tabloids – contribute less than nothing [*].

That breakdown isn’t entirely fair, since it ignores $75 million of parent company costs – which are mostly, but not wholly, newspaper focused – and also $40 million of amortisation costs related to the Foxtel stake (whose accounting treatment I don’t understand). But it makes clear where the financial heart of the business lies, and it’s not in dead trees, or even their digital equivalents. It’s in having a monopoly on pay-TV delivery in Australasia.

Hell, it’s probably the only business of any real worth in the whole of News Corporation, since its assets outside Australia now consist solely of dead-tree businesses.

What are the ongoing risks and opportunities for pay-TV? Well, the biggest opportunity is in gouging people out of even more money for it, and the biggest risk is that people stop subscribing to it. Both of these depend mainly on government: the more draconian copyright legislation is, the more stringently it is enforced, the harder it is for you to just get things from Netflix and iTunes, the more crippled the ABC is, and the slower your broadband Internet is, the more value Foxtel has.

So that’s what The Australian is for. When you’re defending $230 million of annual profit, paying $27 million a year to shape the opinions of Very Serious People in Canberra regarding copyright law, competition law and telecoms policy isn’t a bad investment at all.

[*] per pages 3, 13 and 14 of the accounts. These are complicated by the fact that stakes in the various businesses changed over the year, with some some Fox Sports revenue counting as operating income and some as income from investments.

Meanwhile, at the Festival of Russian Language Films

“We’re really excited about this Russian-language film festival we’ll be hosting with you guys. But, um, we’re a bit uncomfortable with the fact that Putin’s rights-abusing and civilian-killing government is contributing to the funding. Their grant is only GBP1,400 so it’s no biggie; we’re happy to make up the difference ourselves as long as you turn down the donation.”

“THAT’S OUTRAGEOUS AND WE REFUSE. YOU ARE RACIST AGAINST ALL RUSSIAN SPEAKING PEOPLE.”

(inspired by this, obviously)

Representative democracy: a Socratic dialogue

Stolen and edited from Jim Bliss:

“Representative democracy is the least bad!” – can you believe there are people who genuinely put that forward as an argument for democracy?

“Look guys, we’ve all had a taste of the cow shit, the horse shit, the dog turd and the cat poo… and we pretty much agree that the cow shit is the least unpleasant; so it’s going to be cow shit for dinner from now on”

Little guy at the back… “hey everyone! I’ve just found these things growing over here. I’ve decided to call them strawberries, how about we eat these instead of the cowshit?”

Lengthy murmuring among those gathered, before… “Nah, we’re going to stick with the cow shit, it’s tried and tested”.

Why security and safety theatre is the worst

Safety and security are brilliant. Safety and security theatre is bullshit. If you support safety and security theatre measures, which includes nearly all routine airport security, you are helping to make everyone worse off and nobody safer.

Whilst world-travelling over the last month, I discovered that most European carriers [1] now allow the use of small electronic devices except for actual RF transmitters throughout the flight – including take-off and landing. Which isn’t surprising, because there isn’t and never has been any evidence that they ever have (or indeed potential that they ever could) do anything whatsoever to harm a plane.

However, most Asian and Australian carriers [2] still make you switch off your Kindle during take-off, despite the clear evidence and overseas best practice confirming that this is bullshit. This is solely because of safety theatre, enforcing archaic rules for no reason.

There is some (still only hypothetical) evidence that interference from actual RF transmitters could harm older aircraft, so banning mobile phone use in aircraft which haven’t actively been demonstrated to be phone-safe is for the best. It reflects the evidence-based precautionary rules which have made air travel the second-safest transport mode in existence [3].

However, efforts to provide mobile phone cells on modern aircraft which are certified safe have also flagged on many carriers, because they are required to overfly countries whose non-evidence-based regulatory requirements prevent it (chiefly China and the US, although US carriers do at least provide ground-cell-based wifi domestically). So online internet connectivity is a painful process confined to a few carriers, where it generally doesn’t work very well. Entirely because of dumb, non-evidence-based safety theatre.

Security theatre, meanwhile, is the one thing which makes short-haul flying unequivocally worse than 15 years ago, despite the immense improvements in the in-flight experience. The only thing which can prevent a terrorist attack on a flight is intelligence on terrorist groups. If a terrorist gets anywhere near an aircraft, that is an epic and terrible failure in security policy on a par with letting him blow the damn thing up – which, in any case, he almost certainly will be able to do despite the security theatre currently in place.

When a country is ruled by ignorant fuckwits and its security agencies are incompetent, as with the USA in 2001, evidence which would have got the 9/11 gang arrested even by the Keystone Kops long before any attack took place is ignored, terrorists gain access to planes, and terrible things happen. This is followed (hopefully) by improvements in intelligence, and (certainly, because people are stupid) by additional useless security theatre.

This is why getting a plane to America is now even more unpleasant than it used to be. It’s why you can’t take nail clippers on a plane, despite the fact that even McGyver could do no more harm with them than his nails. Even the US TSA floated the idea of resisting the ban on small pointy objects in 2013, on the grounds of its obvious uselessness, only to be shot down by grandstanding politicians screaming TERRORISM!!!!!.

When a country is not and its security agencies are not, as with the UK in 2006, a major terrorist gang gets intercepted and arrested long before they get anywhere near an aircraft with their ridiculous plot [4], and nothing bad happens at all. This is followed (hopefully) by improvements in intelligence, and (certainly, because people are stupid) by additional useless security theatre.

Which is why you [5] now need to stick your tubes of piles and herpes ointment in a transparent bag for public viewing, drink breast milk in front of random strangers, and pay $6 for a bottle of water airside. It’s why – if flying to the US or Australia – you can’t even buy duty free gin in the departure airport (or are forced to check it as cargo and hope it turns up in some random corner of the arrival airport within a few hours of your luggage).

As with safety theatre rules, security theatre rules don’t apply consistently across countries, because they are all made-up bullshit. If there were any need for them, they would be universal. For any rule which does apply universally – like, say, the transport of lithium batteries in hold luggage, or the prohibition on firearms in the cabin – this reflects the fact that it is evidence-based.

I’m not arguing that we should compromise on safety for the sake of convenience [6]. But if every airline, airport and regulator worldwide adopted EU rules on electronic devices on all aircraft (they’re fine), RF devices on tested aircraft (they’re fine), and Hong Kong’s rules on liquids, belts, and shoes (they’re fine), then flying would be a better experience, and the level of public safety would not be diminished at all.

Instead, for the sake of nothing but appeasing ignorant morons, we still have to arrive two hours early for a plane in order to queue endlessly whilst someone’s grandma gets interrogated over the forgotten nail clippers and syrup of prunes in her handbag.

[1] BA and Ryanair, who represent a decent cross-section. Probably there are some who don’t.
[2] Cathay Pacific and Qantas, likewise.
[3] Rail is safest, obviously.
[4] The plan would have failed due to its physical impossibility even had the plotters made it onto a plane – at best, the leaders could have burned their own dicks off, like the Nigerian gentleman whose Christmas 2009 was even worse than mine. Nonetheless, I accept that preventing people from burning their own dicks off on aeroplanes is for the best.
[5] Yes, you, specifically. You do all of these things. I know you. I know where you live.
[6] This is an argument I am happy to make in general, but I’m not using it in this piece.

Of course I’m fucking cynical, that’s why I’m alive and not in gaol

I’m not dead

Mashudur Choudhury, a chap from near enough to where I grew up that it might as well be the same place, went off to Syria to die.

His leaving letter to his missus went, “what good is a husband, father, brother that sits in comfort, sleeps in comfort, eats in comfort but neglects the cause of women being raped, children being attacked, mothers being decapitated, and daughters being murdered?” – this is, in case you’ve lost track of Syria, people being murdered by the government of genocidal lunatic Bashir Assad, who is backed by (not genocidal! Yay Russia! So much progress!) lunatic Vladimir Putin.

Homage to catatonia
I don’t want to minimise the extent to which Choudhury is terrible. He is very terrible. Syria is pretty terrible. Choudhury seems very much like the Stalinists who Orwell wrote about in Homage to Catalonia, who were dogmatic and were as keen to execute non-dogmatic leftist fighters as they were to shoot fascists.

But, rather as with Hausa women in northern Nigeria being kidnapped by organisations that combine Hausa and Wahabbi dogma to come up with something that is revolting, again, what the fuck are we doing intervening in this?

Between 1958 and 1965, my dad grew up in Lagos, the capital of Christian, trading, southern Nigeria; my granddad was one of the most impressive engineers I know who shaped modern Lagos; my grandma was a teacher (I wish she wasn’t also a massive bigot who non-stop tried to get my granddad to move to Australia because there weren’t any blacks left there, but she was).

45 years later, I worked in Lagos, because I was the person at the London office of the multinational consulting firm I was with who said “yes I have family ties to Nigeria; yes I’m willing to do this”. It was the best thing I’ve ever done and the most painful thing I’ve ever done. I knew that I could never live there, but I hated it far less than every other consulting assignment.

Whatever
My mum was Welsh; every progressive thing that my family did feels like it erases the Welsh side of the myth. Now I live in Australia, and I don’t feel even slightly at home in England (London doesn’t count), and the concept of English as opposed to British revolts me. I find UKIP people revolting, and obviously Australia is racist as hell in some ways, but I love the fact that at least Australia – correctly – assigns British people as British, rather than the bullshit divisions between British people that dickheads like Salmond or Farage wish to impose.

I’m British more than I am Australian, but if grandstanding fuckwits abolish Britain on me, then I’m sure as fuck more Australian than I’ll ever be English, Irish or Scottish.

The Dorkiest Fun-Spoilingest Thing Ever Written About Breaking Bad

This joke does the rounds a bit too often:
breaking_bad_cartoon

It doesn’t work.

In the show, because Walter White is a salaried professional, his insurance covers the same procedures that national healthcare insurance schemes generally cover in the sensible world.

The nature of the extremely expensive experimental cancer treatment for which he needs the money isn’t specified in the show – but quite often, such a treatment wouldn’t be deemed cost-effective for funding by the UK NHS, Australian Medicare, or the Canadian, French or German systems either. Like many experimental treatments, it also quite likely wouldn’t have had any effect – which is why insurers and national healthcare systems alike are reluctant to provide funding outside of clinical trial groups.

Now, if someone unemployed or casually employed (ie almost everyone from the subculture Walt visits after heading out on the meth-making trip) had gotten sick, that would have been a story where the outcomes were actually different in the US and the rest of the world…

Only sentimentalism could have saved the Australian car industry

There is much wailing and gnashing of teeth over the news that Toyota will follow its fellow foreign-owned carmakers GM Holden, Ford and Mitsubishi in ending car assembly in Australia. But at least from an economic point of view, there shouldn’t be.

The basic problem for the Australian car industry has nothing to do with unions or pay rates, despite the government’s outrageous lies to the contrary. It’s far simpler than that. Australia is a country of 23 million people, with a new car market of just under a million a year, while car manufacturing is an industry with massive economies of scale where the most efficient factories have annual production levels of more than half a million a year.

Less than half as many cars per worker…

Nissan Motor Manufacturing UK in Sunderland, which is famed for being one of the most productive plants worldwide, is about to increase production from 500,000 to more than 550,000. To knock out those half a million cars, NMMUK employs 6,000 people, and supports around 23,000 jobs in the UK supply chain. So that’s about 80 cars per worker (labour is not the whole story, but it’s a tolerable proxy, and accurate job data is easier to find than full input cost data at plant level).

Toyota Australia employs 2,500 people to produce 100,000 cars year, which is about 40 cars per worker. In the rest of the industry (as of now-ish, before Ford and Holden begin their shutdown), 1200. So carmaking in Australia employs 6600 people directly, for a total of 220,000 cars per year, or about 33 cars per worker (as you might have expected, Holden and Ford are less efficient than Toyota).

Scaling the supply chain in line with NMMUK employment (i.e. assuming Australian suppliers are as inefficient as Australian carmakers) would suggest that about 25,000 supply jobs will be lost when the Australian industry shuts down. Scaling it in line with Nissan output (i.e. assuming Australian suppliers are just as efficient as UK suppliers), you’d assume about 10,000 jobs will be lost.

…and 21,000 jobs, not hundreds of thousands

Data from IBISWorld suggests the actual number of jobs in the industry at risk is about 15,000, somewhere in the middle. So the total number of job losses when the car industry shuts down, including knock-on effects, will be about 21,000 [*]. This is roughly equivalent to the number of public servant jobs the federal government is currently cutting.

(the number of Australians in employment is 11.6 million, as of December 2013; the number of unemployed Australians is 716,000).

These 21,000 jobs are being lost because the Australian car market isn’t large enough to support an efficient domestic carmaking industry, even if every single car Australians bought were manufactured domestically. A large, remote, resource-rich and wealthy island of 23 million people has more productive uses of time and resources than subsidising industries that require greater scale than can possibly be achieved domestically, and where we’ve never excelled at exporting. Economically speaking, we would do better to buy new cars from South Korea, import second-hand cars from Japan, redirect the labour and capital involved towards things we are good at, and spend the subsidy money on things that we actually need.

But whence will come the V8 Supercars of the future?

Economics isn’t the whole story. It’s possible that having a carmaking industry is so important to Australia’s wider culture and self-image that it is worth protecting, whether by direct taxpayer subsidy or by higher import tariffs (which are a tax on everyone who buys a car, whether it is domestic or foreign-made). If Australia agrees as a society that this is the case, then continuing to subsidise carmaking is a completely legitimate decision – just as is the case for the large subsidies that go to farmers.

But if you think that the car industry has closed because wage rates are too high, you are wrong, and you believe the toxic bullshit the Liberals are seeking to peddle in order to erode everyone’s employment conditions. If you think that the decision to stop subsidising inefficient lossmaking industries will cost Australia money, you are wrong, and you believe the economically illiterate bullshit Labor is seeking to peddle in order to bash the Liberals. The only grounds on which to support a domestic car industry are sentimental grounds.

[*] Wider estimates of up to 200,000 job losses have been published in various ‘newspapers’. These are lies.